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You Be the Judge: WRITING PROBLEM Brewster manufactured plastic bottles. Dial made personal care products at many plants around the country, including one in Salem, Virginia. The companies agreed that Dial would purchase from Brewster all of the plastic bottles it needed for its Salem factory. Dial estimated its requirements for one year at 7,850,000 bottles, but added a clause stating that “quantities are estimated only and do not bind Dial to purchase any minimum quantity. ”A few months later, Dial concluded that its Salem plant was unprofitable. The company closed the factory and notified Brewster that it would buy no bottles at all. Brewster sued. Did Dial have the right to reduce its orders to zero?

Operation Management, Management Studies

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